Question

Following is the June 30, 2019, statement of net position for the City of Bay Lake Water Utility Fund.
Required information [The following information applies to the questions displayed below.j Following is the June 30, 2019, statement of net position for the City of Bay Lake Water Utility Fund 15 points CITY OF BAY LAKE Water Utility Fund Statement of Fund Net Position June 30, 2019 eBook Assets Current assets: Print Cash and investments Accounts receivable (net of $13,367 provision for uncollectible accounts) Accrued utility revenue Due from General Fund Interest receivable s 1,775,142 306,870 499,600 29,288 81,936 2,692,836 Total current assets Restricted assets Cash 9,194 Capital assets: Land Buildings (net of $3,420,381 in accumulated depreciation) Machinery and equipment (net of $5,130,505 in accumulated depreciation) $1,781,141 5,214,991 8,489,354 Total capital assets (net) Total Assets 15,485,486 18,187,516 Liabilities Current liabilities: Accounts payable Interest payable Current portion of long-term debt 532,087 131,782 397,000 Total current liabilities Customer deposits Revenue bond payable 1,060,869 9,194 11,513,000 Liabilities payable from restricted assets: Long-term liabilities: Total Liabilities

Answer 1

City of Bay Lake Journal Enteries EventParticulars Debit in $ Credit in $ 1 Sales of Water a/c Dr. To Accrued Utility Revenue 499600 499600 (amount in the Accrued Utility Revenue account was reversed) 2 Accounts Receivable a/c Dr Due from General Fund a/c Dr 2834888 197077 To Sales of Water 3031965 Billings to customers for water usage) 3Cash a/c Dr 264307 To Interest Income 180949 To Accrued Interest Receivable 83358 (cash was for interest earned on investments 4Management & Administration Expense a/c Dr.366374 Maintenance & Distribution Expense a/c Dr. 700509 706747 Treatment Plant Expense a/c To Accounts Payable Dr 1773630 Expenses accrued for the period 5 Cash Restricted a/c Dr. 2471 To Customer Deposits 2471 (5) Cash receipts for customer deposits) 6 Cash a/c Dr 2996766 To Accounts Receivable To Due from General Fund 2783435 213331 Cash collections on customer accounts

7 Accounts Payable a/c Dr Accrued Interest Payable a/c Dr Interest Expense a/c Current Portion of Long Term debt a/c Dr Machinery & Equipment a/c Customer Deposits a/c 1489117 131782 271311 397000 579053 903 Dr Dr. Dr To Cash To Cash - restricted 2868263 903 Cash ents for the period 8 Cash a/c Dr. 470315 To Contribution - Capital Grant 470315 state grant amounting to $470,315 was received 9 Accum. Prov. For Uncollectible a/c Dr 9915 To Accounts Receivable Accounts written off as uncollectible 9915 10 Interfund Transfer out a/c Dr 792172 To Cash utility fund transferred 792172 11 Depreciation Expense a/c Dr Uncollectible accounts a/c Interest Expense a/c Dr Dr. 594270 14769 60812 Build To Accum. De To Accum. Depre Mach & Equip To Accum. Prov. For Uncollectible accounts To Accrued Interest Pavable 237708 356562 14769 60812 (Adjusting entries for the period) Accrued Utility Revenue a/c Accrued Interest Receivablea/c 693241 15695 Dr To Sales of water 693241 15695 To Interest Income Adjusting entries for the period 12 Revenue Bond Payable a/c Dr 397000 To Current Portion of Long Term debt Revenue Bond Payable account was adjusted 397000 13 Sales of Water a/c Dr Dr. Contribution - Capital grant a/c Dr 3225606 196644 470315 Interest Income a/c To Management & Administration expens To Maintenance & Distribution expense To Treatment Plant Expense To Interfund Transfers out To Interest Expense To Depreciation Expense To Uncollectible accounts To Net Assets UnRestricted 366374 700509 706747 792172 332123 594270 14769 385601 Closing Enteries)

13.b.	Net Position - Unrestricted a/c          Dr.	381783
	To Net Position - net Investment in Capital assets		381783
	(579053 - 594270 ) = - 15217 + 397000 = 381783

City of Bay Lake Journal Enteries EventParticulars Debit in $ Credit in $ 1 Sales of Water a/c Dr. To Accrued Utility Revenue 499600 499600 (amount in the Accrued Utility Revenue account was reversed) 2 Accounts Receivable a/c Dr Due from General Fund a/c Dr 2834888 197077 To Sales of Water 3031965 Billings to customers for water usage) 3Cash a/c Dr 264307 To Interest Income 180949 To Accrued Interest Receivable 83358 (cash was for interest earned on investments 4Management & Administration Expense a/c Dr.366374 Maintenance & Distribution Expense a/c Dr. 700509 706747 Treatment Plant Expense a/c To Accounts Payable Dr 1773630 Expenses accrued for the period 5 Cash Restricted a/c Dr. 2471 To Customer Deposits 2471 (5) Cash receipts for customer deposits) 6 Cash a/c Dr 2996766 To Accounts Receivable To Due from General Fund 2783435 213331 Cash collections on customer accounts

7 Accounts Payable a/c Dr Accrued Interest Payable a/c Dr Interest Expense a/c Current Portion of Long Term debt a/c Dr Machinery & Equipment a/c Customer Deposits a/c 1489117 131782 271311 397000 579053 903 Dr Dr. Dr To Cash To Cash - restricted 2868263 903 Cash ents for the period 8 Cash a/c Dr. 470315 To Contribution - Capital Grant 470315 state grant amounting to $470,315 was received 9 Accum. Prov. For Uncollectible a/c Dr 9915 To Accounts Receivable Accounts written off as uncollectible 9915 10 Interfund Transfer out a/c Dr 792172 To Cash utility fund transferred 792172 11 Depreciation Expense a/c Dr Uncollectible accounts a/c Interest Expense a/c Dr Dr. 594270 14769 60812 Build To Accum. De To Accum. Depre Mach & Equip To Accum. Prov. For Uncollectible accounts To Accrued Interest Pavable 237708 356562 14769 60812 (Adjusting entries for the period) Accrued Utility Revenue a/c Accrued Interest Receivablea/c 693241 15695 Dr To Sales of water 693241 15695 To Interest Income Adjusting entries for the period 12 Revenue Bond Payable a/c Dr 397000 To Current Portion of Long Term debt Revenue Bond Payable account was adjusted 397000 13 Sales of Water a/c Dr Dr. Contribution - Capital grant a/c Dr 3225606 196644 470315 Interest Income a/c To Management & Administration expens To Maintenance & Distribution expense To Treatment Plant Expense To Interfund Transfers out To Interest Expense To Depreciation Expense To Uncollectible accounts To Net Assets UnRestricted 366374 700509 706747 792172 332123 594270 14769 385601 Closing Enteries)